6 Signs Your Business Needs a vCIO

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6 Signs Your Business Needs a vCIO

In today’s business world, where technology and business strategy are inextricably linked, a Chief Information Officer (CIO) is an indispensable member of most large companies’ leadership teams. But with annual salaries averaging over $300,0001, a full-time CIO is impractical for most small to medium-sized businesses (SMBs). A popular alternative is a virtual CIO (vCIO), an outsourced resource of expertise, strategic planning, and leadership who works on a part-time or as-needed basis.

Not sure if a vCIO is right for your business? Here are 6 clear signs that your business needs a vCIO:

 

1. Your business does not have a coherent IT strategy.

Businesses that compete most effectively recognize that IT is much more than just a tool for completing day-to-day tasks. Technology is now a key strategic tool—one that allows you to achieve business goals that are central to your competitive advantage. A vCIO has the expertise, in both business strategy and technology, to help you create an IT strategy that makes more effective use of available technologies to achieve business goals ranging from changing your business model to increasing efficiency to expanding your footprint.

2. You’d like to adopt a cloud-first strategy but lack the expertise.

Compared with enterprise-level businesses, SMBs have been slower to adopt a cloud-first strategy. A vCIO can provide smaller businesses with the expertise needed to evaluate their cloud readiness and then plan an organized migration to the cloud. Consulting with a vCIO helps SMBs to determine which applications are suitable for a “lift and shift” migration, which may need refactoring or rewriting before migration, and which may be best-left on-premises. An informed assessment and migration roadmap make the process easier, faster, and less prone to time-consuming errors.

3. You think you might be paying too much for technology across multiple vendors.

SMBs are of necessity cost-conscious, and pruning unnecessary IT spend is a popular use of vCIO expertise among smaller businesses. One study revealed that on average, about a third of a company’s software spend is ultimately wasted2. A vCIO can assess a business’ IT spend, often uncovering tens of thousands of dollars of overspend in areas like unused software licenses and redundant software functionality. A vCIO can also assist by identifying opportunities to consolidate software solutions with fewer vendors to obtain better rates.

4. You need stronger cybersecurity but aren’t sure where to start.

You need stronger cybersecurity but aren’t sure where to start. Only 26% of SMBs feel “very confident” in their ability to respond to a cyberattack3. And for good reason—cybersecurity today has grown quite complex. A vCIO can complete an assessment of your cybersecurity program and explain how to fill any holes that are discovered with appropriate policies, procedures, or technologies.

5. You need to establish an appropriate IT budget for the coming year.

Because IT now fills a strategic role in most businesses, having a carefully developed IT budget is a must. Budgeting for IT is about more than just dollars; it’s about identifying tech spending priorities that support your business’ strategic goals and security. A vCIO can assist with benchmarking as well as with understanding how various IT spend categories serve your long-term interests (e.g., investing in disaster recovery solutions to prevent business-crushing data loss).

6. You lack IT policies or feel that existing policies need improvement.

Your IT policies establish a consistent set of expectations for employees. Policies related to areas like device use, removing users, and password practices help to secure your infrastructure while also documenting compliance with applicable standards and helping your business to qualify for reduced cyber insurance premiums. A vCIO can assist with formulating IT policies that prescribe professional, secure use of IT by employees, and that adhere to any regulations your business must follow.

NexusTek’s vCIOs provide a range of IT assessments and consulting services, including IT budgets and policy, IT spend assessment, cybersecurity and cyber resilience assessment, strategic IT planning, cloud readiness assessment, and much more.

Could your business benefit from a vCIO’s executive-level technology consulting and leadership?

CONTACT US

References:

  1. Glassdoor. (2023, May 8). How much does a Chief Information Officer make? https://www.glassdoor.com/Salaries/chief-information-officer-salary-SRCH_KO0,25.htm
  2. Flexera. (2022). State of ITAM report. https://info.flexera.com/ITAM-REPORT-State-of-IT-AssetManagement
  3. SMB Group. (2023, January 14). SMB business and technology challenges and priorities for 2023. https://www.smb-gr.com/reports/smb-business-and-technology-challenges-and-priorities-for2023/

Money at Risk: Finance & Data Security in the Digital Age

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Money at Risk: Finance & Data Security in the Digital Age

Across industries, providing customers with superior experience is essential for success. However, the financial services industry faces unique challenges relative to customer expectations. Chief among these is the unarguable fact that financial services organizations are consistently a top target for cyber threat actors, a reality that exists in tension with the #1 criterion customers use to evaluate financial institutions: security1.

The Facts: Financial Services Industry and Cyber Threats

Year after year, cybersecurity research reveals the ugly facts. In 2020, the financial services industry was the #1 most targeted industry for cyberattacks2. Ransomware attacks plagued the industry in 2021, with 74% of financial services institutions reporting attacks3. Statistics from 2022 show a continued trend of persistent targeting, as the financial services industry ranked #2 for number of data breaches across all industries4.

Recent research focusing on threat activity in 2022 revealed that distributed-denial-of-service (DDoS) attacks have become the biggest threat to financial services businesses. From 2021 to 2022, DDoS attacks on financial services companies rose 22% year-over-year, making the industry the most frequently targeted for this type of attack5,6. Because DDoS attacks disable the targeted company’s IT systems, hackers often use these attacks to extort financial services firms.

The Challenge: Meeting Financial Customers’ Conflicting Demands

What cyber threat actors know about financial services firms is that system downtime sends a clear warning signal to customers. Getting a sense that their bank, lender, or investment firm has weak security can drive customers to close their accounts and switch to a competitor. This pressure can and does influence financial services companies to pay the cybercriminals to regain system functionality. Given that customers rank security as their top criterion for evaluating a financial services institution, it is understandable that financial services firms might go to these lengths.

Compounding the pressure on financial services companies is that some of their customers’ service expectations introduce security risks of their own. Customers increasingly demand access to their financial information through online and mobile platforms, with 61% of customers currently using some form of online banking each week7. Offering remote account access enhances customer experience, but at the same time increases the attack surface for threat actors. In other words, it gives hackers a higher number of possible points of entry into the customer’s account and the institution’s network.

Keeping up with customer expectations in the digital age can create conflicting demands on financial services institutions. Customers demand a high level of security from their financial institutions, and they also want mobile and online access for the best user experience possible. Meeting the demands of today’s financial customer requires a rock-solid cybersecurity program, discussed in the next section.

The Solution: A Cybersecurity Posture That Earns Digital Trust

Digital trust is earned by businesses that demonstrate a commitment to keeping customers’ data both private and secure. Key elements of a solid security program include:

  • Identity & Access Management (IAM): IAM allows a financial institution to carefully guard remote access to its network and data. Because IAM includes explicit verification of users along with least-privilege access, it adheres to principles of zero trust security. Using measures such as multi-factor authentication (MFA) supports identity verification for both customers and internal stakeholders such as employees. Furthermore, controlling which parties (e.g., employees at different levels of authority or in different departments) can access what portions of the network also creates safeguards that protect against internal and external malfeasance.
  • Security Information & Event Monitoring (SIEM): SIEM provides financial institutions with superior network protection because it uses artificial intelligence (AI) to analyze event log activity across an entire network in real time. When aberrant or suspicious behavior is detected within the financial firm’s network, SIEM tools immediately generate alerts. For example, one of the most frequent attack vectors in the financial services industry is web application attacks, which might go unnoticed by employees until the point at which severe damage is done8. But with SIEM’s early detection of aberrant activity, the financial institution is empowered to take control of the incident in progress and initiate response protocols as appropriate to contain the damage.
  • Encryption: Another important component of a strong cybersecurity program for financial institutions is encryption. Customer data should be encrypted when it is stored, transmitted, or received, as this helps to protect data from unauthorized access.
  • Security Awareness Training: Employee error is an ever-present concern across all industries, making regular security awareness training a must-have. Threat actors use constantly evolving tricks and tactics to gain unauthorized access to financial institution networks and customer accounts. Employees who participate in security awareness training learn about subjects like safe device and password practices, how to spot phishing and other social engineering attacks, and how to report potential threats for investigation.
  • Incident Response Planning: In today’s world, businesses recognize that it’s not a matter of “if” a cyber incident occurs; it’s a matter of when. And when it happens, a ready-to-implement plan will be of the utmost importance. The plan needs to lay out the steps to take and in what order, such as powering down equipment, preserving evidence, and calling the authorities. There should be a clear plan for notifying any parties affected by the incident, including customers. The plan should also include provisions for notifying credit bureaus and customers if sensitive information like social security numbers is breached. Importantly, the most important security feature, endorsed by 56% of financial services customers as “extremely valuable,” was notification regarding social security number breach9.
  • Compliance Assessment: Financial institutions may be subject to any number of security regulations, such as FINRA, SEC, or GDPR, to name a few. A security compliance assessment helps financial organizations to identify where they are out of compliance with applicable standards. With this understanding, recommendations can be made regarding cybersecurity policies, practices, and solutions to implement to cement compliance with applicable standards.

NexusTek is experienced in FINRA, SEC, GDPR, CMMC, and NIST compliance standards, and offers an expansive collection of cybersecurity assessments and solutions to support financial institutions to build digital trust with customers.

Need to ensure that your cybersecurity defense is strong enough? Our cybersecurity experts can help.

References:

  1. Business Wire. (2021, June 22). Privacy and security are top concerns for digital banking consumers. https://www.businesswire.com/news/home/20210622005357/en/Privacy-and-Security-Are-Top-Concerns-for-Digital-Banking-Consumers
  2. Contreras, W. (n.d.). Cyberattacks on financial institutions: Data breaches in 2020. Motiva. https://motiva.net/cyberattacks-on-financial-institutions-data-breaches-in-2020/
  3. Tett, G. (2023, February 16). The financial system is alarmingly vulnerable to cyber attack. Financial Times. https://www.ft.com/content/03507666-aad7-4dc3-a836-658750b880ce
  4. (2022, December 20). Flashpoint year in review: 2022 financial threat landscape. Bloomberg. https://flashpoint.io/blog/risk-intelligence-year-in-review-financial/#:~:text=Approximately%206.5%20percent%20of%20financial,for%20ransomware%20activity%20in%202022
  5. Martin, A. (2023, January 31). Denial-of-service attacks rise, raising concerns for banks. https://www.bloomberg.com/news/articles/2023-01-31/ddos-attacks-rise-a-sign-of-concern-for-banks-finance?leadSource=uverify%20wall
  6. Herzberg, B. (2023). The biggest cyber threats for the financial industry in 2023. Cyber Defense Magazine. https://www.cyberdefensemagazine.com/the-biggest-cyber-threats-for-the-financial-industry-in-2023/#:~:text=According%20to%20external%20market%20data,attacks%20has%20been%20constantly%20growing
  7. Bennett, R. (2023, March 13). Digital banking trends in 2023. Bankrate. https://www.bankrate.com/banking/digital-banking-trends-and-statistics/#digital-trends
  8. Sanna, N. (2023, March 7). How does your industry compare when it comes to the financial loss exposure of cyber threats? World Economic Forum. https://www.weforum.org/agenda/2023/03/how-does-your-industry-compare-when-it-comes-to-the-financial-impact-of-cyber-threats/
  9. Paige, W. (2022, December 1). Banks in the US aren’t listening to consumers’ data security fears. Insider Intelligence. https://www.insiderintelligence.com/content/banks-not-acting-consumers-

10 Questions to Ask When Choosing a Managed Service Provider

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10 Questions to Ask When Choosing a Managed Service Provider

Selecting a managed service provider (MSP) is by no means an easy task, and it’s important to do your homework thoroughly before making the plunge into this new relationship. Factors like pricing and service level agreements may be obvious points to ask a potential MSP about, but nontechnical professionals often wonder if there are other important questions they’re overlooking as they choose an MSP. And, there may very well be!

We’ve compiled this list of 10 questions to help you dig a little deeper as you evaluate MSPs:

 
1. What is the managed service provider’s full service portfolio?

Although your business might just be shopping around for managed IT services at the moment, it is still a good idea to ask about the range of services an MSP offers. For example, do they offer cybersecurity? Cloud services? Data backup and recovery? IT procurement services? It is likely that your IT needs will change as your business evolves over time, and having a “one-stop-shop” for IT equipment and services is a major convenience that can be cost-saving as well.

 

2. Does the managed service provider offer customized plans?

Established service packages that are fashioned around common groupings of business IT needs are a great convenience, to be sure. But it is still important for MSPs to offer customized plans because pre-packaged plans may not fit every business’ specific IT needs. Customization options empower you to work with the MSP to create a service plan that is tailored to your business’ needs and preferences. This includes identifying the areas of your business that require the most support, determining the level of service you require, and ensuring that the services offered align with your business’ larger objectives. Importantly, a customized plan can also help your business to avoid paying for unneeded services, helping you to get the best value for your investment.

 

3. Does the managed service provider offer dedicated engineers?

Dedicated engineers provide a wealth of benefits, but not every MSP offers this option. So, make sure to ask about this specifically. By working closely with your business, dedicated engineers develop a deep understanding of your business operations, IT infrastructure, and goals. This allows the engineer to provide personalized recommendations and solutions that are tailored to your company’s specific needs. This familiarity also enhances communication and fosters a consistent and collaborative relationship between the engineer and your business.

 

4. Does the managed service provider offer both onsite and remote support?

Onsite and remote support have their own advantages and limitations, and many businesses require a flexible approach to IT support to meet their unique needs. Onsite support involves sending an engineer to the client’s location to provide hands-on support, while remote support involves providing assistance via phone, email, or remote desktop software. When you work with an MSP that offers both onsite and remote support, you have the flexibility to choose the type of support that best suits your needs. For example, if there is a hardware issue that requires physical access to the device, onsite support may be required. However, if the issue is software-related, remote support may be sufficient.

 
5. Do they offer a 24-hour help desk?

Help desk services play a crucial role in both fully outsourced and co-managed IT services. It is important to verify that the MSP does in fact offer help desk services and that this service is available 24/7/365. You never know when IT issues will rear their pesky heads, so having around-the-clock support is essential.

 

6. Is their help desk staffed internally or outsourced?

Also, take the time to ask about how they staff their help desk. This service may be outsourced by some MSPs, and in that case, you would have some additional homework to do to learn about the help desk contractor’s credentials, business practices, location, and business reputation. Internally staffed help desk teams are trained and managed according to the standards of the MSP, resulting in a more consistent experience for customers. Internal help desk staff for U.S.-based MSPs are also more likely to themselves be located within the U.S., which is another factor to consider.

 

7. Are there co-management as well as outsourcing options for managed IT services?

Although fully outsourcing IT management is an ideal option for many businesses, a great number of businesses prefer a co-managed IT arrangement. Co-management options allow your business to have greater control over your IT infrastructure while still receiving the support and expertise of the MSP. Co-management options typically involve the MSP working closely with your in-house IT team to provide support and guidance, while allowing your business to retain control over certain aspects of its IT operations. This can be especially important for businesses that have complex IT infrastructures or that require a high level of customization.

 

8. Can the managed service provider assist your business with strategic IT planning?

Technology now occupies a central role in business strategy. As IT continues to advance, businesses need to keep up with its evolving capabilities in order to stay competitive. To get the most out of your IT, it is important to partner with an MSP who can provide guidance on strategic uses of technology. An MSP who is prepared to support your business with strategic IT planning will offer a collection of strategic services, such as assessments, technology roadmapping, budget planning, vendor management, and training and support services.

 

9. Who are the managed service provider’s technology partners?

In addition to learning about the services and solutions the MSP offers, be sure to ask who their technology partners are. It is important that technology partners are well respected in the industry, and it can be especially beneficial if the MSP offers a diverse portfolio of technologies. A diverse range of solutions partners allows the MSP to tailor solutions to meet your business’ specific needs. This ensures that your business receives the most appropriate solutions and services for your business, and can help you optimize your IT infrastructure and operations.

 

10. What professional certifications do their staff possess?

Another important area to ask an MSP about is professional certifications among their technical staff. Certifications demonstrate that the MSP possesses a high level of expertise and knowledge in specific areas of technology and with specific technology manufacturers (e.g., Microsoft, Cisco). Certifications reflect an MSP’s ability to meet certain quality standards, such as best practices, security protocols, and compliance regulations. Certifications often require MSPs to keep pace with industry trends and best practices. This can help MSPs stay ahead of the curve and provide your business with the most innovative and effective solutions and services.

As a managed service provider serving small and medium-sized businesses for over 25 years, NexusTek offers a broad range of managed IT, cybersecurity, and cloud services that are customizable to your business’ needs and leverage best-in-class technologies.

Are you interested in learning more about what managed services can do for your business?

6 Reasons to Join the Hybrid & Multi-Cloud Revolution

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6 Reasons to Join the Hybrid & Multi-Cloud Revolution

According to the Merriam-Webster Dictionary, “revolution” is defined as “a sudden, radical, or complete change,” or “a fundamental change in the way of thinking about” or using something, which can include widespread changes in usage of and preferences for technologies1. Cloud computing—including hybrid and multi-cloud models—represents a major change in the way businesses think about their IT infrastructure, as well as how they harness it to get the job done. It is unquestionably a revolution!

Still, you might wonder whether joining this revolution is the right move for your business. And if so, you’re in plentiful company. Although most small and medium-sized businesses (SMBs) have dipped their toe in the water of the cloud computing revolution, using software-as-a-service (SaaS) applications here and there, a full 63% of small and medium-sized businesses (SMBs) still rely heavily on on-premises servers for their computing needs2.

Why adopt hybrid or multi-cloud computing? Here are six compelling reasons:

 

1.  Accessibility

One of the most revolutionary aspects of cloud computing is that it enables organizations to access their IT resources from anywhere with an internet connection. This means that employees can work remotely or from different locations without the need for a physical office or traditional network infrastructure. For many employees, the days of commuting to the office every day in rush hour traffic are over—talk about a revolution!

2.  Continuity & Disaster-Proofing

Cloud computing can also improve availability because cloud providers typically have redundant systems in place to ensure that services are always available. You can also integrate data backup and recovery solutions that ensure that your data are regularly backed up and retrievable in the event of disaster. Maintaining infrastructure redundancy and off-network backups in a traditional on-premises IT environment is much more costly and time-consuming in comparison.

3. Easy Scalability

Cloud computing allows businesses to quickly and easily scale their IT resources up or down based on their needs. This makes it simple and convenient for companies to adjust their computing resources to match their workload. With on-premises IT, businesses have to purchase, install, and manage additional hardware when their resource demands increase. This can be challenging to accomplish quickly, which is why more and more businesses are taking advantage of cloud computing for workloads that are prone to rapid usage changes, such as order processing systems.

4. Cost Savings

Cloud computing can be more cost-effective than traditional on-premises infrastructure because it eliminates the need for businesses to purchase and maintain their own hardware. With on-premises hardware, companies need to pay additional costs associated with IT support staffing, repairs, and energy consumption. When you contract with a cloud provider, they handle all of the housing, upkeep, repairs, and other overhead. Your business pays a fee for this service, but cloud providers can take advantage of economies of scale, passing along lower costs to customers. Overall, migrating to the cloud can reduce your total cost of ownership by 30-40%3.

5. Hybrid Cloud Flexibility 

While the above benefits can be experienced with cloud computing more broadly, there are unique benefits to hybrid and multi-cloud models. Hybrid cloud computing allows your business to choose which workloads to keep on-premises and which to migrate to the cloud. This flexibility allows you to design a unique infrastructure around your business’ specific needs. Say, for example, you have a legacy ERP that needs to be hosted onsite, but you’d like to host customer service and ordering software in the cloud. You can do that! With a hybrid cloud model, you get the best of both worlds.

6. Multi-Cloud Flexibility

With a multi-cloud model (and yes, you can set up a hybrid, multi-cloud infrastructure), you have the flexibility to use public cloud services from multiple providers, which means that you don’t get “locked in” with a single public cloud provider. Your business can use marketing software hosted by one cloud provider, but use a CRM hosted by another provider. The big perk here is that you can choose which cloud-hosted software solutions are the best fit for your business, without being limited to one single public cloud provider.

The hybrid and multi-cloud approach has gained popularity in recent years as organizations look for ways to optimize their IT infrastructure and take advantage of the benefits offered by different cloud providers. When you compare cloud computing with the traditional onsite computing models of yesteryear, it’s clear that hybrid and multi-cloud computing are truly revolutionary!

NexusTek offers a range of cloud hosting services, including the highly popular hybrid and multi-cloud models, with public and private cloud solutions to suit your business’ specific needs.

Thinking about joining the hybrid and multi-cloud revolution? Talk with one of our cloud experts today!

  1. Merriam-Webster. (2023). Revolution. https://www.merriam-webster.com/dictionary/revolution
  2. (2021, June 25). Research: SMB IT stack decisions based on fulfilling business needs. https://www.techrepublic.com/resource-library/research/research-smb-it-stack-decisions-based-on-fulfilling-business-needs/
  3. (2021, August 25). Small business cloud adoption in 2021. https://www.impactmybiz.com/blog/infographic-small-business-cloud-adoption/

Old IT…What’s the Worst That Could Happen?

READ TIME: 4 MIN

Old IT…What’s the Worst That Could Happen?

We’ve all been there at least once. You’ve developed a nice stable relationship with your technology—say, your computer, or your cell phone, or your laptop. And then someone comes along and says, “Oh wow, you’ve got to update that thing!”

And you blanch. You’re aware of your device’s weaknesses, sure, and you know there are newer models on the market that might seem snazzier or more sophisticated. But you know your device so well and don’t see any reason to update if it’s still working for you. It may be old and slowing down somewhat, but what’s the worst that could happen?

The truth is that “the worst that could happen” can be pretty extreme, so we’ve compiled this list to clarify the true risks to your business of using outdated technology. Read on…

 

Cyberattacks

We put this one at the top of the list because it’s one of the worst things that can happen to a business that continues using outdated IT. Both software and hardware eventually reach the point at which they are no longer supported by the manufacturer, meaning they no longer issue security updates and patches. Unpatched vulnerabilities can open the door to ransomware attacks, data breaches, data loss or destruction, and other security issues that can affect everyone from employees to partners to customers. The remediation costs alone (e.g., restoring systems, replacing lost data) average $139,000 for small and medium-sized businesses (SMBs)1. On top of that, many companies face lawsuits from employees when sensitive data is leaked, as well as lost business due to a damaged reputation.

Decreased Productivity

It is often the case that computers slow down little by little, which can make their gradually slowing speeds seem normal. But when compared with the faster speeds of new technology, the slowness of outdated IT can be striking. And it’s more than just an annoyance. Think about every time you open or move a file, initiate an action in an application, or search for information in your network or on the internet. If each of these actions results in a delay while your IT chugs along at a snail’s pace, it can add up to a lot of lost productivity over the course of the workday.

Increased Downtime

Aging technology is more prone to breakdowns and failures, which increases your business’ risk of downtime. For example, when an employee’s old computer crashes and refuses to reboot, this can create downtime for that employee until they obtain another working device. Now, imagine that it wasn’t a computer that crashed but an entire server. That is going to create downtime that affects a large number of employees and could even impact sales and service to customers. For the majority of SMBs, downtime costs $10,000 to $50,000 per hour2.

Compatibility Issues

 Software is constantly evolving, resulting in ever-increasing system requirements. Outdated computers and servers may not be able to keep up with newer software or hardware, leading to difficulties in integrating new technologies. This places you at a disadvantage, as it limits your business’s ability to adopt new technologies and processes that your competitors may already be using.

Higher Costs

This last point is a bit ironic, because many of us have avoided updating our old IT to be frugal. But using outdated technology can actually end up raising your costs. When technology ages, it needs more maintenance and repairs to keep running. Another consideration is that older IT is often less energy-efficient than more recent models, leading to higher electricity bills and increased operating costs.

Overall, the worst that could happen if your business uses outdated IT is that you risk falling behind your competitors, losing productivity, facing security breaches, and incurring higher costs. To avoid these risks, it is important to invest in up-to-date IT infrastructure and regularly update your software and hardware.

As a managed service provider with over 25 years of experience serving small and medium-sized businesses, NexusTek offers both IT procurement services and ongoing IT services to keep your hardware and software in optimal shape.


Is it time to update your IT? Talk to one of our IT procurement specialists today.

  1. References:

    1. Help Net Security. (2022, September 15). SMBs are hardest-hit by ransomware. https://www.helpnetsecurity.com/2022/09/15/small-businesses-ransomware-targets/
    2. (2020, May 13). Infrascale survey highlights the heavy costs of business downtime. https://www.infrascale.com/press-release/infrascale-survey-highlights-the-heavy-costs-of-business-downtime/

     

Is E-commerce Right for Smaller Businesses? 10 Stats That Tell the Story

Is E-commerce Right for Smaller Businesses? 10 Stats That Tell the Story

READ TIME: 4 MIN

Is E-commerce Right for Smaller Businesses? 10 Stats That Tell the Story

Is E-commerce Right for Smaller Businesses? 10 Stats That Tell the Story

A nearly universal aim among smaller businesses is to become…well, less small. The question of how to expand market reach and find new customers is on the minds of most leaders of small and medium-sized businesses (SMBs), and the prospect of branching out into e-commerce can be tempting.

But is e-commerce really a good move for SMBs? It’s a reasonable question, which is why we’ve put together this “story in stats” to shed light on e-commerce’s place in the small business world. And spoiler alert…for SMBs who are considering adding online sales to their repertoire, the story has a happy ending!

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Let’s start with an overview. Currently, over one third of SMBs have not set up any type of e-commerce platform1. This places these businesses at a disadvantage if their competitors offer online sales options (which they probably do).

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To understand the magnitude of the advantage SMBs gain when they adjust their business models to include e-commerce options, think about this stat: In the last 10 years, the portion of U.S. retail sales commanded by e-commerce has TRIPLED. Specifically, online sales accounted for about 5% of all U.S. retail sales in 2013, but now they account for about 15%2. With younger generations opting for e-shopping at higher rates than older generations, it’s logical to expect this upward trend to continue.

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On the flip side, to understand the disadvantage experienced by companies that don’t offer e-commerce options, consider this statistic: 40% of buyers will not purchase items or services from a company that doesn’t offer their preferred channel3. That means you could lose out on a huge chunk of potential customers simply because you don’t offer their preferred buying channels.

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And what are those most preferred channels? A whopping 64% of customers reported a distinct preference for ordering online and picking up in-store4. A slightly smaller proportion (55%) reported a preference for either fully online buying or hybrid (i.e., combination of in-store and online). So for SMBs wondering how to position themselves to reach as many customers as possible, the take-home here is that having both in-store and e-commerce options is advantageous.

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Now, you may be reasonably wondering if e-commerce will increase your total revenue, or if it will simply cannibalize your brick-and-mortar sales. The encouraging news is that for brick-and-mortar operations that added an e-commerce option, their online channel generated a 28% increase in revenue overall5.

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But wait, it gets even better! Adding an e-commerce option not only generates additional revenue through online purchases—it can also increase your in-store sales. Remember how we mentioned above the 64% of buyers prefer to purchase online but pick up in-store? Well, those buyers often find additional items they want to purchase once they enter the store. A Google study found that 85% of buyers make additional in-store purchases when picking up their online orders6.

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Once a business makes the plunge into the e-commerce realm, some new questions arise. You may already know that customer experience is the key to success, but how do you enhance online customer experience? In short, website speed. One study revealed that a 0.1 second improvement in site speed was associated with a 9.2% increase in order value7.

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On the other hand, a slow website may portend disappointing outcomes for SMBs who adopt e-commerce. One study revealed that 79% of customers would be less likely to make a repeat purchase from an online site if they felt dissatisfied with its speed8. This is one reason why hosting your e-commerce platform with a cloud provider makes sense. You avoid any latency issues that may crop up with on-premises infrastructure, and the scalability of the cloud allows your platform to handle surges in traffic and purchases.

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Even with good site speed, you still face the unpleasant reality of shopping cart abandonment. One study found that 63% of customers abandon carts if shipping is too expensive, while 36% do so if shipping takes too long9. Whether partnering with a third-party fulfillment company or managing shipping internally, automating workflows following order submission helps to increase efficiency and reduce labor costs associated with order fulfillment.

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Customers may also abandon carts if personal information they entered previously has not been stored in the online purchase platform. When faced with having to re-enter credit card information, 30% of online buyers will abandon carts, and 25% do the same if asked to re-enter their shipping information10. For SMBs wishing to enhance customer experience by storing this type of sensitive data, consulting with a cybersecurity expert first is a must.

The story told by the last few stats (aka, “How to Lose Online Customers”) may have left you wondering what happened to the “happy ending” that we promised for this story. The silver lining is that developing a solid underlying infrastructure for your e-commerce operations can help you to create the positive shopping experience that attracts customers and keeps them coming back.

Offering both cloud hosting, managed IT, and cybersecurity services, NexusTek assists SMBs to create, manage, and secure the IT infrastructure needed to support top-of-the-line e-commerce operations.

Interested in exploring how to create a powerful infrastructure for your e-commerce platform?

References:

  1. (2021). Small and medium business trends report. https://www.salesforce.com/content/dam/web/en_gb/www/pdf/2021-smb-trends-uk.pdf
  2. S. Census. (2023, February 17). U.S. Census Bureau news. https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf
  3. (2019). State of the connected customer, third edition. https://www.salesforce.com/content/dam/web/en_us/www/assets/pdf/salesforce-state-of-the-connected-customer-report-2019.pdf
  4. Haller, K., Wallace, M., Cheung, J., & Gupta, S. (2022). Consumers want it all: Hybrid shopping, sustainability, and purpose-driven brands. IBM. https://www.ibm.com/downloads/cas/YZYLMLEV
  5. Stewart, N. (2023). Omnichannel retail brands increase revenue 28% via ecommerce presence. BigCommerce. https://www.bigcommerce.com/blog/ecommerce-presence-increase-revenue/
  6. (2021, August 18). In-store yield higher sales conversion rates than e-commerce. https://www.linkedin.com/pulse/in-store-yield-higher-sales-conversion-rates-than-e-commerce-/
  7. (2020). Milliseconds make millions. https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/Consulting/Milliseconds_Make_Millions_report.pdf
  8. Wilson, A. (2022). Why site speed is so important: Conversions, loyalty, and Google search ranking. Shopify. https://www.shopify.com/blog/site-speed-importance#:~:text=In%20an%20era%20of%20instant,users%20by%20up%20to%2027%25
  9. Estay, B. (2023). 16 online shopping statistics: How many people shop online? BigCommerce. https://www.bigcommerce.com/blog/online-shopping-statistics/
  10. Estay, B. (2023). 16 online shopping statistics: How many people shop online? BigCommerce. https://www.bigcommerce.com/blog/online-shopping-statistics/

How SMBs Can Strategize Like Enterprise-Level Organizations

How SMBs Can Strategize Like Enterprise-Level Organizations

READ TIME: 4 MIN

How SMBs Can Strategize Like Enterprise-Level Organizations

How SMBs Can Strategize Like Enterprise-Level Organizations

When it comes to IT strategy, larger businesses often have an edge over smaller ones. Most small and medium-sized businesses (SMBs) have few dedicated IT employees, and about a quarter of businesses with under 50 employees operate using only part-time IT employees1. In many SMBs, the company’s IT is handled entirely by non-technical employees, with managers and executives up to the CEO playing a hands-on role in the daily management of IT infrastructure.

In contrast, larger enterprises typically have a full IT department to deal with day-to-day IT management. They also have executive-level technology leaders whose role is primarily strategic, meaning that they provide forward-looking technology leadership that helps the C-suite make IT decisions that align well with the organization’s business goals and budget.

Although SMBs might get along well enough managing their IT in a purely tactical sense, they often lag behind in terms of IT strategy. While the average SMB uses IT just to get their day’s work done, their larger or more strategic competitors are putting technology to work to achieve goals like changing their business model, increasing speed of service, increasing productivity, and improving security of client transactions.

SMBs and IT Strategy—Yes, It’s Possible

The positive news is that taking a strategic approach to IT is within the realm of the SMB. You first need to start thinking about IT as a source of strategy that you will weave into your larger business strategy. The basic building blocks of IT strategy include the following:

  • Document existing IT environment: Include all equipment, software, licenses, and IT people. This helps to establish your IT baseline.

  • Financial assessment of IT environment: Determine your IT budget, including both CapEx and OpEx, and forecast for future spending. Calculating an IT cost ratio (i.e., your IT costs as a percentage of total revenue) can help your business to understand how its IT spending compares to peers.

  • Evaluate risks or weaknesses of current IT: Document any gaps in capability, any issues your current IT creates, or areas that do not meet expectations. These risks or weaknesses provide the foundation for future IT opportunities as you develop your strategy.

  • Define business goals and aligned technology goals: This is the big one. As you review the goals of your business, ask yourself whether your current IT furthers those goals. If there is a disconnect between the outcomes your IT generates and what your organization is trying to achieve as a business, you will need to articulate new technology goals that better support your business goals.

  • Identify technologies that align with your technology goals: Once you have established technology goals that match your business goals, it’s time to determine which technologies will further those goals. For example, if growth is a key business goal, then migrating from on-premises to cloud computing might be a strategic choice, as the cloud scales more quickly and at lower cost than on-premises infrastructure.

  • Create IT roadmap: Once you have selected technologies that support your business goals, an important step is to create an IT roadmap with both short- and long-term goals. Phasing in new technologies over time helps to make the changes less stressful for employees, while also keeping costs manageable within your budget.

Lack of IT Expertise at SMBs—What to Do About It

Given that executive-level technology leaders like CIOs are responsible for strategic IT planning in large companies, it stands to reason that creating IT strategy takes some skill. CIOs have a combination of experience, training, and education that gives them a deep understanding of IT and business, and how the two intertwine. They also earn salaries that average over $300,0002, making it impractical for most SMBs to employ a CIO on a full-time basis.

This is where technology leadership-as-a-service comes in, also known as the Virtual CIO (vCIO). The vCIO is an executive-level technology leader who works in a consulting role with businesses that do not or cannot employ their own CIO in-house. When SMBs add a vCIO to their strategic planning team, they bring in the IT expertise that is needed to create a strategic IT roadmap, but without the expense of employing a full-time technology leader.

By following a thorough and deliberate planning process and bringing in technology leadership to the extent they desire, SMBs can strategize like the big companies and outpace their similar-sized competitors. This is why some say that technology is the “great equalizer” in business. When used effectively, it puts smaller businesses on an equal footing with their larger competitors.

Offering vCIO consultation and strategic planning, NexusTek assists SMBs to create roadmaps to achieve their business goals through more effective use of IT.

Interested in exploring how strategic IT planning can help your business achieve its goals?

References:

  1. SMB Group. (2023). SMB business and technology challenges and priorities for 2023. https://www.smb-gr.com/reports/smb-business-and-technology-challenges-and-priorities-for-2023/
  2. (2023, February 9). How much does a Chief Information Officer make? https://www.glassdoor.com/Salaries/chief-information-officer-salary-SRCH_KO0,25.htm

Future-Proofing in an Age of Constant Change

Future-Proofing in an Age of Constant Change

READ TIME: 4 MIN

Future-Proofing in an Age of Constant Change

Future-Proofing in an Age of Constant Change

The notion of future-proofing your business within an environment characterized by constant change may seem contradictory at first glance. If future-proofing entails implementing an IT infrastructure that will not rapidly become obsolete, and we know that technology changes continually, how is it possible to truly future-proof your IT?

It’s an excellent question, and the answer is that future-proofing is not really about any particular device or technology. Future-proofing your business infrastructure is more about strategy, about making IT choices that allow your business to shift and change with the currents of technological advancement with greater agility. It’s a nuanced difference, but an important nuance, nonetheless.

If the objective of future-proofing is to improve your business’ ability to adapt to an ever-changing business environment, then what are some concrete examples of this strategy in motion? Below we cover four examples along with explanations of how they help you to avoid obsolescence.

Strategic Choice

Adopt cloud-based infrastructure.

How This Future-Proofs Your IT

  • Ensures that you always have access to state-of-the-art infrastructure, as data center hardware and networking are continually updated by cloud service providers.
  • Supports multi-channel customer service, an increasingly expected option that 78% of customers already routinely use1.
  • Allows you to scale up or down easily as your business changes and grows, and as market conditions change.
  • Enables remote and hybrid work options, for which demand continues to grow; about half of employees prefer remote work, with about 25% of onsite workers planning to search for a remote job2.

Strategic Choice

Migrate applications to Software-as-a-Service (SaaS) versions.

How This Future-Proofs Your IT

  • Offers you access to the most recent version of an application on a subscription basis, so you never have to worry about buying and installing new versions.
  • Supports access to business and customer data from anywhere, creating flexibility to change when, how, and where you conduct business.
  • Gives all employees access to the same customer data, allowing them to provide consistent, personalized service at a level now expected by 72% of customers3.

Strategic Choice

Refresh on-premises hardware and software routinely.

How This Future-Proofs Your IT

  • Ensures that as new software tools that may be useful in advancing your business objectives become available, your business will be positioned to adopt the new tools, which often impose systems demands that outdated hardware and operating systems cannot keep up with.
  • Ensures that software, operating systems are continually patched and supported by manufacturer.

Strategic Choice

Include vCIO in your strategic planning team.

How This Future-Proofs Your IT

  • Keeps you apprised of technology trends, and whether and how they might apply to your business.
  • Improves your ability to plan strategically for infrastructure that resists obsolescence—in other words, helps you align IT decisions with future-proofing strategy.

One might also argue that (a) cybersecurity solutions and (b) managed IT services belong on this list, as both promote IT longevity and viability in their own ways. Implementing a multi-layered cybersecurity program helps to prevent cyber incidents that can lead to data loss, downtime, enormous remediation costs, and possibly even lawsuits. Clearly these types of outcomes can damage the future prospects of a business.

Similarly, managed IT services keep your entire infrastructure maintained and in good condition, improving productivity, ensuring a reliable customer experience, and avoiding major issues that can lead to unplanned downtime.

And while these solutions both certainly put your business in a position to continue operating smoothly into the future, the strategic choices in the table above stand apart in their centrality to future-proofing. This is because they contribute specifically to your business’ ability to adapt and stay on the leading edge, both in terms of the technology you use and also by positioning your business to take advantage of new market opportunities through strategic use of IT.

NexusTek offers strategic consulting to guide your business’ future-proofing initiatives, along with the IT solutions you need to keep your infrastructure healthy and viable into the future.

Interested in talking to an IT strategy expert about how to future-proof your infrastructure?

7 Reasons Businesses Love Having a Dedicated Engineer

7 Reasons Businesses Love Having a Dedicated Engineer

READ TIME: 4 MIN

7 Reasons Businesses Love Having a Dedicated Engineer

7 Reasons Businesses Love Having a Dedicated Engineer

It’s Valentine’s Day, and love is in the air. And in the world of IT management, few are so roundly adored as dedicated engineers. This may prompt the question: What is a dedicated engineer? A dedicated engineer is a highly skilled IT professional who is assigned to a specific business, and who provides routine and as-needed technical support to keep the business’ infrastructure running smoothly.

Why do businesses love dedicated engineers so much? Following are 7 key reasons:

1. They know you and your business.

When you work with a dedicated engineer, they get to know your business and develop a deep familiarity with your infrastructure and how it relates to your business needs. In other words, they understand how you use IT to get important jobs done throughout your company. This familiarity engenders a sense of shared purpose, of partnership between your business and your dedicated engineer, and it also saves you time because you’re not having to continually explain your IT to new techs who don’t know your business well.

2. They can save you money.

We all know that preventing problems is cheaper than reacting to them later when the damage is done. Whether it’s downtime, cyber incidents, or data loss, proactive IT management to prevent such problems can save you untold amounts. In addition, dedicated engineers can also be a more cost-effective choice than hiring your own IT engineer, and you never have to worry about turnover costs related to recruiting and training.

3. They prevent unpleasant surprises.

Dedicated engineers don’t just react to IT issues; they take a proactive approach to maintaining your infrastructure, using their expertise to identify and resolve issues before they become a problem for your business. Their proactive attention to IT management keeps your infrastructure tuned up and running reliably, preventing costly issues like downtime and data loss.

4. They strengthen your in-house IT team.

Having a dedicated engineer working alongside your own internal IT team can help to improve communication and coordination regarding infrastructure management. Most businesses struggle with high turnover among tech support staff and are continually dealing with the loss of IT knowledge and experience such turnover causes. Having an experienced, dedicated engineer can help to stem those effects, making sure that key knowledge about your infrastructure is retained within the support team.

5. They empower your IT decision making.

Dedicated engineers can provide you with regular technology reviews, providing you with key metrics to help you understand the current state of your IT from top to bottom. This equips you with the information you need to make smart decisions about your IT both in the present and future.

6. They keep you current on tech changes.

You have undoubtedly noticed that technology changes…constantly. Most leaders of small and medium-sized businesses (SMBs) don’t have the time or inclination to stay current on the multitude of tech advancements that can and do impact business IT. But a dedicated engineer does. Dedicated engineers stay up to date on the latest business technology changes and can help you understand the pros and cons of adopting new technologies.

7. They work where you need them.

Another great thing about dedicated engineers is that they work where and how you prefer. Some businesses want IT management onsite, and some want remote support. With a dedicated engineer, you can choose the arrangement that works best for your business.

With the wealth of knowledge and skill they offer, it is easy to see why dedicated engineers quickly become invaluable members of the SMB teams they join.

NexusTek offers dedicated engineer support along with a comprehensive portfolio of IT management services that keep SMBs productive and on the cutting edge.

Interested in exploring dedicated engineer support for your business?

3 Real-Life Cybersecurity Incidents… and What They Can Teach You

3 Real-Life Cybersecurity Incidents... and What They Can Teach You

READ TIME: 4 MIN

3 Real-Life Cybersecurity Incidents... and What They Can Teach You

3 Real-Life Cybersecurity Incidents… and What They Can Teach You

Before getting into the gritty details, let us first acknowledge that no one—be it an individual or a business—likes being “made an example of” in front of an audience. Being the victim of a cyberattack is painful in a number of ways, not the least of which is the public embarrassment or stigma associated with data breach. Our aim in this article is not to place blame, but to highlight the valuable lessons that other businesses can learn from these real-life incidents.

Incident 1: Malicious Web Browser Update

A large insurance company with a nationwide presence was the victim of a ransomware attack that began with a social engineering scheme. The threat actors created a fake web browser update that was delivered through a legitimate website, and after successfully tricking a single employee into clicking on the fake update, they were able to breach that employee’s workstation.

From there, the threat actors moved through the company’s systems, disabling security monitoring tools, deleting backups, and encrypting data throughout. In compliance with ransom demands by the attackers, the company reportedly paid $40 million to obtain a decryption key and to prevent public release of employees’ sensitive data, which threat actors claimed to have stolen.

What Can Be Learned:

  • As with many cyberattacks, this one highlights the importance of employee security awareness training, as a simple employee error opened the door to an extensively damaging attack and data breach.
  • Another key point is that before launching the ransomware attack in full, the threat actors located and destroyed backups. This illustrates the importance of business continuity and disaster recovery strategies that include offsite backups that attackers cannot access from inside the company’s network.

Incident 2: Ransomware Attack

The next cybersecurity incident involved a regional hospitality business with about 2,700 employees, that operates a collection of music venues, restaurants, and hotels in the Pacific Northwest. In late 2021, the company’s employees found that they could not access digital files as usual—the result of a malware infection. As soon as the company identified the problem, they shut down key systems to prevent the attack from progressing. The immediate effect of the attack was that they were unable to use any point-of-sale machines, and online access to functions like room reservations was immobilized.

The long-term issues have cut deeper, however, as the ensuing investigation revealed that the threat actors accessed sensitive employee information (e.g., social security numbers), which could be used in identity theft, from thousands of employee records that spanned decades. On top of this, employees have filed a class action lawsuit against the company, alleging that insufficient cybersecurity measures allowed the ransomware attack to happen.

What Can Be Learned:

  • The downtime the company experienced is a common side effect of cyberattacks, which demonstrates the importance of planning ahead with business continuity strategies to ensure that critical infrastructure remains operational in a crisis situation.
  • Although reports to date have not explained the root cause of this ransomware attack, what this case makes clear is that post-attack lawsuits are a reality. In such cases, being able to show due diligence to protect sensitive data before an attack occurs is important. Conducting cybersecurity risk assessments and using a multi-layered cybersecurity strategy that addresses threats from a variety of angles are helpful strategies toward this end.
  • Cybersecurity risk management assessments may also be useful in qualifying for cyber insurance, which can help with business and legal costs associated with cyberattacks.

Incident 3: Spear Phishing/Business Email Compromise

In a world of ever more sophisticated, technology-based cyberattack vectors, it is easy to forget about the more basic cyber scams. But they’re still in use and still a threat. As an example, consider the business email compromise (BEC) attack that befell a small construction company in Texas.

The company received an email from what they thought was one of their contractors. The email said that they were having problems receiving payments, and it asked that payment instead be mailed to a different address. What the company didn’t notice was that the sender’s email address had been spoofed, meaning that it looked very similar to an actual email address from the contractor, with only slight differences. Unfortunately, the construction company dutifully sent a check for $210,312 to the BEC attackers before learning that the request was not legitimate.

What Can Be Learned:

  • Employee security awareness training on a routine basis is paramount. Spoofed email addresses use subtle substitutions to make them easy to miss, and employees need to be sensitized to this threat to make sure it doesn’t slip through.
  • When in doubt about an email’s authenticity, reach out directly (don’t reply to the email) to the ostensible sender to verify.

These are just a few real-life examples of cyber incidents that in their different ways have been very costly to the businesses victimized. Taken together, these stories illustrate the importance of protecting access to your systems through strategies ranging from employee awareness training to strong password policy to multi-factor authentication.

Should threat actors navigate past these barriers, solutions that can detect malicious activity and limit access within your network (e.g., SIEM, IAM) are important in slowing threat actors down. Finally, resilience strategies are important for ensuring that critical systems keep running and that backups are maintained where threat actors cannot reach them, keeping them safe from loss or destruction.

Is your business doing all it can to manage cyber risk? Our cybersecurity experts can help.

The descriptions of cyber incidents in this blog post are based on actual events, but identifying information has been omitted out of respect for the businesses affected.